Revenue was -19% year-on-year, and adjusted net interest rates remained flat month-on-month. 2024Q1, the company achieved total GTV transactions of 629.9 billion yuan, -35% year-on-year; revenue of 16.4 billion yuan, -19% year-on-year. The year-on-year revenue performance was significantly better than that of GTV, mainly benefiting from the increase in the share of the “two wings” business to 35%. Home improvement and home furnishing and emerging businesses, including housing rental services, are still growing rapidly. On the profit side, 2024Q1, the company achieved net profit of 430 million yuan, -84% year on year; adjusted net profit to mother of 1.4 billion yuan, -61% year on year; adjusted net interest rate of 8.5%, contributing profit margin of 31.7%, and gross profit margin of 25.2%, all of which were basically the same from month to month.
The main waterway business was affected by the downturn in the industry in the short term. 2024Q1, the company's stock housing business GTV was 453.2 billion yuan, -32% year over year; stock housing business revenue was 5.7 billion yuan, -38% year over year; the monetization rate of the stock housing business fell to 1.26%, mainly because the company actively expanded stores combined active stock housing transactions in second-tier cities, and the share of household transactions in the chain declined; and the profit margin contributing to the stock housing business remained 45%. 2024Q1, the company's new housing business achieved total GTV transactions of 151.8 billion yuan, -45% year over year; new housing business revenue of 4.9 billion yuan, 42% year over year, monetization rate reached a record high of 3.24%; contributed profit margin 22.3%, declining year-on-month, mainly due to increasing brokers' commission sharing ratio and improving the platform ecosystem.
The new racetrack business continues to grow at a high rate. 2024Q1, the home improvement and home furnishing business revenue was 2.4 billion yuan, with a monetization rate of 71%, contributing a profit margin of 31%; the first independently disclosed housing rental service revenue of 2.6 billion yuan, +189% year over year, contributing 5.5% profit margin; other emerging business revenue was 700 million yuan, +85% year over year, contributing 95% profit margin.
The number of agents in the company's stores has rebounded. As of the end of 2024Q1, the number of company stores was 44,000, +7% YoY, +1%; 443,000 agents, +2% YoY, +4% month-on-month; active stores and active agents accounted for 96% and 90% respectively; and 47.7 million monthly active mobile users of the company's App, +5% YoY and +10% month-on-month.
Investment advice: The company has always maintained its leading position in the real estate agency industry and has strong performance flexibility. In light of recent positive changes in real estate policy, we are optimistic about the company's continued profitability. We maintain our previous profit forecast. We expect the company's adjusted net profit for 2024-2025 to be 98.99 billion yuan and earnings per share of 2.67/2.69 yuan, respectively, corresponding to the current share price PE of 14.5/14.4 times, respectively, and maintain the “superior to market” rating.
Risk warning: If the housing industry fluctuates due to factors such as a slowdown in economic growth, a decline in residents' income expectations, policy relaxation falling short of expectations, and the impact of credit risk incidents on housing enterprises, the company's operations will be adversely affected.